Aaisp 2007 dealix-cobaltpresentation_04_14_07
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  • Intro of myself House keeping PG Cell Phones
  • Why are you here? To Pray……pray for a lay down …5 minutes tops! Get people talking about what they want to learn. Only elaborate BRIEFLY on their comments and move on to the next person.
  • Review today’s briefly. Do your poker table here, but it needs to be quicker than the previous version. Quickly get across the point that dealers are focusing their advertising budgets on table 1 – the losing table. Table 4 is where the money is made, but dealers place the smallest bets on the winning table and the biggest bets on the losing table. I think the poker table is a good lead-in, but don’t get distracted with lead handling and the previous version!
  • Dealers are missing the target. Spending money on advertising that can’t be measured and is ineffective. Customers are online. If you want to hit your target market with effective, measurable advertising…you need to concentrate on Online Marketing!
  • Your OK on this slide…just keep it moving.
  • Go around the room and ask several GM’s or DP’s: What’s your total advertising budget? How much of your total budget do you spend on traditional media…newspaper, radio, TV, direct mail? How do you measure your customers and sales as a direct result those media sources? Make some sort of statement….”doesn’t that seem ridiculous”…”With all that money your spending, shouldn’t you have measurable results?” “Shouldn’t your advertisers be accountable…to you!”
  • Really emphasize the point that “guys, this is how consumers start their shopping now days”
  • Top dealers today recognize this.
  • Break Here – 10:00 – 10 Minute Break.
  • Acura of Bellevue, WA is getting record performance with their Internet search marketing. They’ve gone from a combined email/phone lead volume of around 200 in May '06 to their current monthly volume of 565. Their conversion rate last month was over 6.5% including phone and email leads. Their average CPA is about $21 for paid search. They're hitting the top of the charts with organic search results as well! Towne Hyundai (Denville, NJ) They had their best internet sales department month in July 06 – they sold 76 cars where pre-program levels were 30-40 cars a month. In July, their dealership was one of the top 30 Hyundai dealerships in the country. Peninsula Subaru (OR) “Our Suzuki sales have gone from 5 units per month to over 30 units per month since we signed up for Internet search I’m now the number one Suzuki dealer on the West Coast.”
  • Melissa
  • Why are these the best quality lead sources? Website & OEM leads close at 20% - 25% 100 leads = 25 sales 3 rd party leads close at 10% - 13% 100 leads = 13 sales
  • Timing – Should get here at 11:00 – Take 10 minute break – wrap up last section at 12:00

Aaisp 2007 dealix-cobaltpresentation_04_14_07 Aaisp 2007 dealix-cobaltpresentation_04_14_07 Presentation Transcript

  • Cobalt’s “Breakfast of Champions” Building an Online Marketing Strategy Association of Automotive Internet Sales Professionals AAISP National Conference – Nashville, TN March 13 – 15, 2007 Dean Evans Vice President Field Marketing The Cobalt Group, Inc.
  • Breakfast of Champions Why are you here?
    • To Learn:
    • Why it is critical as a general manager to modify your advertising spend to create additional, lower cost “opportunities” for your dealership
    • Why it is critical as an Internet director or manager to understand how to secure more advertising budget for Internet marketing activities
    • Leverage Internet marketing areas to drive more vehicle sales from the industry’s top dealers
    • Discover ways to close more leads
  • Breakfast of Champions Today’s Topics
    • Are You Off-Target? Your Customers Are Online. Why isn’t Your Advertising?
      • Dramatic changes taking place in automotive advertising and marketing
      • Implications for dealers
    • Ingredients to a Successful Online Marketing Strategy
    • Putting it all Together: Lead Management that Drives Success
  • Are You Off-Target? Your Customers Are Online. Why Isn’t Your Advertising? Newspaper Radio Television Yellow Pages Online Marketing
  • Consumers spend more time online than just about anywhere else ...
    • Weekly Consumer Media Consumption
    • Going Online, 14 hours
    • Watching TV, 14 hours
    • Listening to Radio, 5 hours
    • Reading Books, 3 hours
    • Reading Newspapers, 2 hours
    • Reading Magazines, 1 hours
    • Average Dealership Media Spend
    • 33.0% Newspaper & Yellow Pages
    • 19.5% Television
    • 17.7% Radio
    • 10.0% Direct Response
    • 9.9% Internet
    • 9.9% Other
    Source: Jupiter Research (January 2006), NADA 2006 Industry Analysis Division CPVR = $457 Yet dealers spend <10% of their budget on online advertising!
  • How Much are YOU Spending on Online Advertising?
    • $21K – Newspaper
    • $12K – TV
    • $11K – Radio
    • $12K – Direct Mail / Other
    • $6K – Online
    Source: IAB, NADA 2006 Industry Analysis Division Average Dealership Spends $64,000 per Month in Advertising
    • What’s YOUR Advertising Spend & Mix?
    • How Do You Know It’s Working?
  • The Internet Is the Starting-Point for Most Vehicle Buyers
    • 67% of auto buyers research online*.
    • 89% use search engines for research**.
    • 70% start at a search engine***.
    * JD Power 2005 Autoshopper.com Study **JD Power 2005 Autoshopper.com Study ***Yahoo! Compete 2005 auto study Dealer Website 3 rd Party Website OEM Website Auto Buyers Dealer
  • You Need to Rethink Your Entire Advertising Strategy… Dealer Website Internet Search Television Direct Mail Billboard Newspaper Radio
  • Internet Search Implications for Your Dealership If you’re NOT advertising on the Internet …
    • Your overall advertising program will be off-target.
    • You’re missing out on high-ROI vehicle sales.
    • You’re sending vehicle buyers to your competitors!
  • Breakfast of Champions Today’s Topics
    • Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
    • Ingredients to a Successful Online Marketing Strategy
      • Creating the cornerstone of your marketing strategy
      • Spend less, make more. An introduction to Internet search
      • Creating opportunities through effective 3 rd party lead sources
      • Increasing customer retention and dealership profits through Owner Marketing
    • Putting it All Together: Lead Management that Drives Success
  • How Does Your Advertising Strategy Compare to Top-Performing Dealers?
    • Today’s Top Performers …
    • Make the website the focal point of their advertising.
    • Align online advertising with print / radio / TV.
    • Continually tune their website for higher organic Internet search engine ranking.
    • Drive more leads through Internet search advertising.
    • Acquire valuable customers via high performing 3 rd -party leads.
    • Build long term, profitable relationships with existing customers via owner marketing.
  • Dealership Website The Cornerstone of your Marketing Strategy
    • Elements of a Top-Performing Website
    • Ever increasing visitor-to-“customer action” ratio
    • Generates first page SEO placement / flexible to handle paid search campaigns
    • Integrates with your OEM’s advertising and merchandizing
    • Synchronizes your offline and online advertising - fast!
    • Is consumer-tested NOT “what the dealer likes visually”
    • Answers the consumers’ question FAST: “Why should I buy from your dealership?”
  • Breakfast of Champions Today’s Topics
    • Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
    • Ingredients to a Successful Online Marketing Strategy
      • Creating the cornerstone of your marketing strategy
      • Spend less, make more. An introduction to Internet search
      • Creating opportunities through effective 3 rd party lead sources
      • Increasing customer retention and dealership profits through Owner Marketing
    • Putting it All Together: Lead Management that Drives Success
  • Internet Search Is Like Buying a Home It’s about Location, Location, Location =Organic Search =Paid Search
    • Original Search Page
    • Algorithmic
    • 12 – 14 Links
    • Advertising
    • Pay Per Click
  • Top Things to Know about Organic Search (a.k.a. search engine optimization (SEO), natural & free listings)
    • All search engines “crawl” the Web to establish organic rankings of websites based on their content and links.
    • Page one, “above the fold” is the best real estate.
    • Organic search is like “PR” (not advertising) – influence, not control.
    • Organic Search is Step 1 in a smart search strategy.
  • Top Things to Know about Paid Search a.k.a. pay-per-click, search engine marketing (SEM) & paid placement
    • Paid search is advertising, and it’s how search engines make money.
    • Paid search success is based on
      • Keywords / bidding strategy
      • Ad copy and campaign quality
      • Dealer website quality / ability to convert traffic into leads
    • Google, Yahoo!, & MSN’s networks account for 95% of all Internet search traffic. (Source: CNN / Money.com 5/06.)
  • Smart Dealers Already Profiting from Internet Search Leading Acura Dealer (WA) Email / Phone Lead Volume Before Internet Search With Internet Search Before Internet Search With Internet Search Leading Hyundai Dealer (NJ) Internet Sales / Month Leading Subaru Dealer (OR) Internet Suzuki Sales / Month Before Internet Search With Internet Search
  • The “Magic” of Search
    • Key Benefits
    • Measurable ROI for search advertising
    • It’s where your customers are.
    • It’s targeted: you connect with
      • The right buyers
      • The right ads & offers
      • The right time
    • Key Success Factors
    • Integrate with your overall ad budget
      • Best leverage of your spending
    • Organic + paid search delivers best results.
    • Integrate with conversion-oriented website
    • Work with a trusted provider
      • It’s too complex to do it yourself
  • Breakfast of Champions Today’s Topics
    • Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
    • Ingredients to a Successful Online Marketing Strategy
      • Creating the cornerstone of your marketing strategy
      • Spend less, make more. An introduction to Internet search
      • Creating opportunities through effective 3 rd -party lead sources
      • Increasing customer retention and dealership profits through Owner Marketing
    • Putting it All Together: Lead Management that Drives Success
  • Search and 3 rd Party Leads
    • While Internet search is exploding, the proportion of consumers visiting 3 rd -party sites is actually increasing.
    • Don’t get caught up in the “you can drive all your customers to your site” mentality.
    • Nationally, we see lead to close rates decline on dealer site leads when search campaigns are started.
    • Smartest Internet lead strategy includes a mix of
      • Internet search marketing
      • 3 rd party leads
      • OEM leads
    Source: Ward’s Dealer Business , April 2006 .
  • 3 rd Party Leads and Classified Ads An Efficient and Effective Lead Source
    • New Car
    • Aggregators today are not all alike. Some specialize in selling. Others specialize in helping you sell more vehicles.
    • Can fine tune your sales DMA alignment to source the best customer for your business … and do it as often as you like to test and re-test.
    • Used Car
    • Know that there are both subscription-based and pay-for-performance models. Know your cost per customer action.
    • Video, professional photos, pricing data/knowledge and copy expertise are needed today to top performing ad units.
  • 3 rd -Party Sites Are Becoming More Specialized 20 in1999 250+ in 2007
  • Breakfast of Champions Today’s Topics
    • Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
    • Ingredients to a Successful Online Marketing Strategy
      • Creating the cornerstone of your marketing strategy
      • Spend less, make more. An introduction to Internet search
      • Creating opportunities through effective 3 rd -party lead sources
      • Increasing customer retention and dealership profits through Owner Marketing
    • Putting it All Together: Lead Management that Drives Success
  • Your Customers Don’t Need to See you as Frequently… Are you letting them forget you? Yesterday’s Average Service Interval The Widening Awareness Gap 3 Months Today’s Average Service Interval Six Months, a Year, More? BMW’s oil changes: 15,000 miles Acura’s 1 st service: ~ 100,000 miles GM vehicles: oil changes at varying intervals
  • Owner Marketing Success Story: Dave Gill Pontiac GMC Owner Marketing Solution
    • Challenges
    • Improve customer retention
    • Increase service revenue
    • Drive vehicle sales
    • Results
    • Proactive, targeted customer campaigns to match service & sales business needs
    • 6x increase in sales to customers in the email database
    • 40% of repair orders driven by Ownership marketing provider
    • 81% of CSI/SSI survey responses completed within 72 hours
  • Ensures You Communicate to Your Customers at the Right Time with the Right Message Dealership Consumer Continuous Email Collection from Nine National Databases! OnStation Automated Sales & Service Promotions Service Reminders Customer Surveys Online Appointments On-demand Campaigns Service Sales To make sure they return to you!
  • Owner Marketing Takeaways
    • Most effective direct mail is really Direct Email
    • Owner marketing is hard to do yourself.
      • FTC / Compliance issues
      • Hassles of collecting customer emails
    • Find a trusted provider to do it for you.
      • “Outsource” marketing department
      • Rapid response
      • Success, expertise, agility
  • Breakfast of Champions Today’s Topics
    • Are You Off-Target? Your Customers are Online. Why isn’t your Advertising?
    • Ingredients to a Successful Online Marketing Strategy
    • Putting it all together: Lead Management that Drives Success
      • eBusiness Performance Study
        • Best Practices of High-Performing Dealers
      • People and process. Developing the skills for success
  • Industry and Dealership eBusiness Performance Study
    • > 1.1 million leads, matched to actual vehicle sales by R.L. Polk
    • Average close rates, sales cycle, brand defection, cross-shopping
    • Evaluate consumer perceptions of dealership lead handling
    • Responsiveness, response times, quality of response
    • Evaluate common best practices leading to higher conversions
    12 months of leads, from 1,329 dealerships Telephone survey: >4,000 customers who submitted leads Industry-wide eMystery Shop: >4,000 dealers, 22 brands 20 on-site evaluations of high-performing dealers
  • Dealership responsiveness to leads is improving Quality is diminishing                   23.9%   NA Used Brand or Product Highlights     25.9%   38.2% Answered the Shoppers Questions                           Quality of Responses:                     6.5   9.5 Response Time Average (hrs)     69.7%   60.0% Overall Responsiveness     2005* 2004*                               Industry eMystery Shop Metrics      
  • High Performers Provide Price
    • Of the high performers interviewed:
    • 87% state they always answer the customer’s primary question(s)
    • 77% provide price to customers without hesitation
    “ If I don’t provide price, I am the highest price” --Michael Waldrop, Coggin Honda
  • Brand Defection is High What is the primary reason you bought a vehicle from another dealership? Other Brand (customer decided to buy a different brand new vehicle) Dealership Response (poor) Price (too high)
  • Putting it all Together People & Process: Developing the Skills for Success Hi [Customer Name], Why Me? Why Make? Why Model? Hyundai Sonata Dethrones Camry and Accord Thank you for your request for additional information on the exciting new 2006 Hyundai Sonata. My name is Tony Bell, I am the Internet Director and it is my job to ensure that you get all of the information you need to make a good buying decision. We are extremely pleased with the new 2006 Sonata as well as all of our customers that already have a new Sonata in their driveway. When you look at the long list of standard features and read what the “experts” have written about this car, you will understand why Toyota and Honda Dealers are worried. I, or one of my staff will be contacting you to gather some additional information, answer any questions, schedule a test drive or arrange a home delivery. I have included in this email links to various sources for reviews, comparisons, and pricing guidelines. I have included a link to Edmunds.com, they have a very accurate pricing guide to follow. They publish a TMV price to give the customer a figure that they should expect to pay for a vehicle. Edmunds.com is constantly surveying dealers as well as customers to arrive at these prices. Please keep in mind that every car deal is as unique as every customer and you may qualify for additional rebates and incentives. Reviews for the Sonata Hyundai Sonata Dethrones Camry and Accord http://www.autoblog.com/entry/1234000897051169/ http://cars.about.com/od/hyundai/fr/bk_06sonata.htm http://money.cnn.com/2005/08/03/Autos/carreviews/hyundai_sonata/ http://www.caranddriver.com/article.asp?section_id=3&article_id=9741
  • Customers Have a Short Purchase Timeframe 0-30 31-60 61-90 91+ Elapsed time between the date of lead submission and date of lead closure Based on registration information supplied by R.L. Polk & Co. Sales/leases have been adjusted for matching efficiency by a factor of 1.36, which represents a 73% historical match rate 273,886 103,130 63,455 204,486 Days to Close 42% 16% 10% 32% Number of Closed Leads 68% of leads closed to a sale within 90 days
  • Research Summary and Implications More dealers are responding to leads, and doing so more rapidly – what’s your dealership average? Quality of lead response matters – do you use ‘auto responses’ or do you try to answer the consumer’s question? Avoiding price / skirting questions may cost dealers business – do you provide price responses in your emails? Customers are buying sooner, Internet leads are hot!
  • eBusiness Performance Study Best Practices of High-Performing Dealers
    • Similarities from the Top-Performing Dealerships
    • Internet director sits at the head management table and are become tomorrows (and today’s) general managers
    • Treat Internet customers just like walk-in’s, because most of them are today.
    • Make the website the focal point of their advertising strategy.
    • Synchronize Internet advertising with print / radio and TV advertising.
    • 3 rd -party leads from top lead providers (used and new).
    • Drive additional leads through Internet search marketing.
    • Continually optimize the dealership website for higher organic search engine placement.
  • eBusiness Performance Study Best Practices of High-Performing Dealers
    • Similarities from the Top-Performing Dealerships
    • Continually fine-tune their website for maximum visitor-to-customer action conversion.
    • Offer – even in initial response emails – price, alternative vehicles and timely initial responses to leads.
    • Utilize for email responses new ways to stand out from your competition : Branding and Video for example on vehicle requested.
    • Enhance their follow-up processes with high-performance templates that are automated for increase sales person performance.
    • Invest in Internet training : AAISP national convention.
  • Breakfast of Champions AAISP National Convention
    • Congrats to everyone who has come to the AAISP conference.
    • You are smart to be investing in training and networking venues like AAISP!
    • [email_address]